A-Z Popular Blog Top Search »
Related Guides

What is Total Cost Of Ownership?

 , October 24, 2015 updated on March 05, 2023
Total cost of ownership is a financial estimate that seeks to determine the full cost of an investment over its lifetime. This may include costs related to financing, insurance, acquisition, operations, maintenance, renewal, decommissioning and environmentally responsible disposal. In some cases it also includes opportunity costs. Estimates of total cost of ownership are typically used to compare business investments or options such as buying versus leasing.
Overview: Total Cost Of Ownership
FunctionFinancial Management
Management Accounting
Cost Benefit Analysis
DefinitionAn estimate of the full cost of an asset over its lifetime or a defined period of time.
ValueIdentifying the full financial impact of a purchase or investment.
Related TechniquesLifecycle Cost Analysis
Net Present Value

Management Accounting

This is the complete list of articles we have written about management accounting.
Best In Class
Complexity Cost
Cycle Time
Employee Productivity
Labor Productivity
Lead Time
Run Rate
Statistical Analysis
Takt Time
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Management Accounting

A list of management accounting techniques and concepts.

Target Costing

A definition of target costing with examples.

Continuous Improvement

A definition of continuous improvement with examples.

Takt Time

An overview of takt time with calculation formula and example.

Lead Time vs Cycle Time

The difference between lead time and cycle time explained with an example.

Productivity Formula

How to calculate productivity with 3 examples.

Complexity Cost

A definition of complexity cost with examples.

Run Rate

The definition of run rate with calculation examples.

Managerial Economics

The definition of managerial economics with examples.

Decision Making

A list of decision making techniques.

Abilene Paradox

The observation that groups may make collective decisions that are viewed as wrong or irrational by each individual member of the group.

Decision Making Process

A complete guide to the decision making process.

Rational Thought

Rational thought is often somewhat logical but includes factors such as emotion, imagination, culture, language and social conventions.


The common types of uncertainty in decision making and strategy.

Information Costs

A definition of information costs with examples.

Reverse Brainstorming

A definition of reverse brainstorming with examples.

Decision Fatigue

The definition of decision fatigue with examples.

Devils Advocate

Taking a position that you do not necessarily agree with for the purposes of argument.

Paradox Of Choice

The definition of paradox of choice with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map